2019 (8) TMI 1223 - HC - GST

High Court Orders Release of Seized Truck & Goods Under GST Act

The High Court of Gujarat, comprising Mr. J. B. Pardiwala and Mr. A. C. Rao, JJ., ordered the immediate release of a truck and goods seized under the GST ... Release of seized vehicle alongwith the goods - Sections 129 and 130 respectively of the GST Act, 2017 - HELD THAT:- An amount of ₹ 2,29,520/has been deposited by the writ-applicant towards the tax and penalty - the respondents are directed to immediately release the truck as well as the goods seized by them under the provisions of the GST Act. Issues:Seizure of truck and goods under GST Act, 2017 - Applicability of Sections 129 and 130 - Release of truck and goods pending final disposal of petition.Analysis:The High Court of Gujarat, comprising Mr. J. B. Pardiwala and Mr. A. C. Rao, JJ., heard a case involving the seizure of a truck and goods under Sections 129 and 130 of the GST Act, 2017. The writ-applicant, engaged in the transport business and claiming ownership of the truck in question, sought the release of the truck and goods pending the final disposal of the petition. An amount of Rs. 2,29,520 had been deposited by the writ-applicant towards tax and penalty, as evidenced by receipts on Page 27, Annexure-H. The Court, acknowledging the deposit, directed the respondents to immediately release the truck and goods seized under the GST Act. Direct service was permitted for compliance.The primary issue before the Court was the applicability of Sections 129 and 130 of the GST Act, 2017 concerning the seizure of goods and vehicles. The Court noted that the writ-applicant, a transport business owner, had deposited a specific amount towards tax and penalty, indicating compliance with financial obligations. This led the Court to order the immediate release of the truck and goods seized by the authorities. The decision highlights the importance of meeting financial obligations under the GST Act to secure the release of seized assets pending legal proceedings.In the judgment, the Court emphasized the significance of compliance with tax and penalty requirements under the GST Act, as demonstrated by the writ-applicant's deposit. By ordering the release of the truck and goods, the Court balanced the interests of the petitioner with the legal obligations under the Act. The ruling underscores the Court's role in ensuring fairness and adherence to statutory provisions while addressing issues related to seizures under the GST Act. The decision sets a precedent for timely release of seized assets upon fulfillment of financial obligations, promoting a balance between enforcement of tax laws and protection of individual rights.